One more prophet of doom…Is a black swan in the making?

The financial system in the US and, God forbid, that of ROW seems to be in for Black Swan events. Even if you and I may not agree with the dire predictions, it makes sense to hedge our situation as far as our financial assets are concerned..read this piece.

Recently, Professor Roubini’s scenarios have been dire enough to make the flesh creep. But his thinking deserves to be taken seriously. He first predicted a US recession in July 2006*. At that time, his view was extremely controversial. It is so no longer. Now he states that there is “a rising probability of a ‘catastrophic’ financial and economic outcome”**. The characteristics of this scenario are, he argues: “A vicious circle where a deep recession makes the financial losses more severe and where, in turn, large and growing financial losses and a financial meltdown make the recession even more severe.”